Trade-Ideas: Avinger (AVGR) Is Today's Weak On High Relative Volume Stock

Trade-Ideas LLC identified Avinger (AVGR) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Avinger

(

AVGR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Avinger as such a stock due to the following factors:

  • AVGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • AVGR has traded 205,684 shares today.
  • AVGR is trading at 3.70 times the normal volume for the stock at this time of day.
  • AVGR is trading at a new low 3.23% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AVGR:

Avinger, Inc., a commercial-stage medical device company, designs, manufactures, and sells image-guided and catheter-based systems used by physicians to treat patients with peripheral arterial disease (PAD) in the United States and Europe. Currently there are 2 analysts that rate Avinger a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Avinger has been 142,100 shares per day over the past 30 days. Avinger has a market cap of $87.5 million and is part of the health care sector and health services industry. Shares are down 71.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Avinger as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 55.2% when compared to the same quarter one year ago, falling from -$10.42 million to -$16.17 million.
  • The gross profit margin for AVINGER INC is currently lower than what is desirable, coming in at 33.38%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -356.17% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$16.19 million or 104.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AVINGER INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AVINGER INC reported poor results of -$4.23 versus -$0.80 in the prior year. For the next year, the market is expecting a contraction of 4.0% in earnings (-$4.40 versus -$4.23).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, AVGR has underperformed the S&P 500 Index, declining 11.13% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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